“In light of the recent sell-off in global equities, it is now an incontestable FACT that Apple is the most undervalued and underappreciated large-cap growth company in America,” Andy Zaky writes for Bullish Cross.
“The stock trades at an extremely depressed valuation that Wall Street isn’t taking seriously (8.25 Forward P/E Ratio), the company’s growth continues to outpace every large cap company on the entire S&P 500, and the company’s growth rate percentage – defying all laws of gravity – continues to accelerate without any sign of abating,” Zaky writes. “Every quarter that goes by, Apple reports another multi-year record high growth rate that continues to be brushed aside and overlooked by investors. Apple’s stock performance relative to its valuation and fundamentals, and relative to other companies with lower growth rates and more expensive valuations is completely abysmal.”
Zaky writes, “Eventually, Apple will hit an inflection point where this 2-year phase of P/E compression comes to an abrupt end. Apple is already valued below the S&P 500. If the earnings continue to come in anywhere close to 50% which is far below the 70-82% we’ve seen in the past 3-years, then the stock will have to rise significantly in order to merely maintain its depressed valuation.”
Much more in the full article here.